AREC in DOE Talks to Scale Rare Earth Recovery from Coal

The DOE's Critical Minerals and Materials program has awarded more than $100 million in previous rounds to projects focused on rare earth recovery from coal. American Resources' selection puts it in a competitive pool. The company's ReElement technology has been tested at pilot scale, processing material from Appalachian coal waste.

Rare earths like neodymium and praseodymium are used in permanent magnets for electric vehicles and wind turbines. The US imports most of its rare earth supply from China. A domestic source from coal waste could reduce that dependence, though scaling remains a challenge.

ReElement's chromatography process can handle mixed rare earth streams without the multiple solvent extraction stages used in traditional processing. The company says the method reduces costs and environmental impact. It also claims higher recovery rates, though independent verification is limited.

American Resources has access to coal waste feedstocks through its existing operations in Appalachia. The DOE has studied coal waste as a rare earth source for years. The region holds decades of accumulated waste piles.

China controls roughly 70% of global rare earth production. The US produces less than 5%. The DOE aims to establish a domestic rare earth supply chain by 2030. American Resources' project could contribute to that goal.

ReElement's technology was developed in collaboration with Purdue University. The company has operated a pilot plant in Indiana. The DOE award would fund the next step: a commercial-scale facility in the Appalachian region.

The award negotiations are expected to conclude by the end of the fiscal year. American Resources said it will provide updates as talks progress. The company's stock has been volatile, reflecting the uncertainty around its transition from coal to rare earths.